By TON Sri Lanka 

Recently, the Sri Lankan president said during his first wide-ranging interview with a foreign media organization at his home in Colombo, since the Sri Lankan crisis unfolded that he won’t stand for re-election. During the interview Sri Lankan President said he doesn't want to leave as a failed president. The Sri Lanka President declared to finish the remaining two years in his term despite months-long street protests calling for his ouster.

The defiance and of Sri Lankan President to finish term amid economic failures that tilted Sri Lanka into its worst-ever economic crisis. The economic crunch forced the public to raise the slogans of “Go Home,” with protesters blaming President and his family for decisions that led to severe shortages of everything from fuel to medicine, stoking inflation to 40% and forcing a historic debt default.

Thousands of demonstrators have camped outside the president’s seaside office since mid-March, forcing him to retreat to his barricaded official residence about a kilometer away. The economic nosedive risen into political turmoil with the resignation of the president’s old brother as the nation’s prime minister, after clashes between government supporters and the protesters turned bloody in May.

Now, the President and his new Prime Minister are seeking about $6 billion in aid over six months from the International Monetary Fund and countries including India and China. The rupee has lost about 82% over the past year and the nation’s debt is trading deep in distressed territory. Sri Lanka will need $5 billion over the next six months to ensure basic living standards, and is renegotiating the terms of a yuan-denominated swap worth $1.5 billion with China so as to fund essential imports.

The island nation's worst economic crisis in seven decades led to a shortage of foreign exchange that hindered imports of essential items such as fuel, medicine and fertilizer, aggravating devaluation, street demonstrations and a change of government.

Sri Lanka need about $3.3 billion for fuel imports, $900 million for food, $250 million for cooking gas and $600 million more for fertilizer this year. The central bank has projected the economy will contract by 3.5% in 2022 but added that he was confident growth could return with a strong reform package, debt restructuring and international support.

Sri Lanka need to restructure the entire economy .The Indian Ocean nation of 22 million is negotiating a loan package worth about $3 billion from the International Monetary Fund, in addition to help from countries such as China, India and Japan.

On Tuesday, the cabinet approved a $55-million credit line from India's Exim Bank to fund 150,000 tons of urea imports a critical requirement as supplies have run out during the current cropping season. While food inflation of 57% is partly driven by higher global commodity prices, a depreciated currency and low domestic production, it is estimated that yields from the next harvest will be halved by the lack of fertilizer.

The United Nations is set to make a worldwide public appeal for $48 million for food, agriculture and health to help Sri Lanka. Sri Lanka was also renegotiating with China the terms of a yuan denominated swap worth $1.5 billion agreed last year.

The early terms provided that the swap could only be used if Sri Lanka maintained reserves equivalent to three months of imports. However, with reserves now well below that level, Sri Lanka has to request China to reconsider the requirement and allow the swap to proceed.The new Pm who is also finance minister may unveil an interim budget next month that aims to slash government expenses and looks to increase annual welfare spending to $500 million from about $350 million.

This is implausible to pacify protesters who are calling for his immediate resignation. “With presidential elections more than two years away, the president decision to see complete his term is anticipated to increases the delicate political uncertainty and could hamper reform efforts.

The president is also cynical about the success of a planned amendment to the constitution, which seeks to contain the executive presidency. The cabinet is due to approve the proposals which would rollback wide-ranging powers of incumbent president. A draft of the 21st amendment will give some powers back to the parliament in a bid to restore its independence in key decision-making. No doubt, all these measures can apartially and temporary give relief and is not answer to the prevailing crisis. President has to think on other lines.